BWP Trust (BWP) H1 2026 earnings summary

Executive summary

• Net profit after revaluations increased 41.2% year-over-year to $221.8 million, driven by portfolio revaluation gains, improved leasing spreads, and internalisation of management, which was completed in July/August 2025, forming BWP Group.

• Portfolio optimisation, profitable growth, and renewal were key focuses, with Bunnings lease reset extending WALE to 7.5 years and a growing emphasis on asset repurposing and capital recycling.

• Interim distribution per security increased 4.1% to 9.58 cents, with FY26 distribution guidance reaffirmed at 19.41 cents per security, a 4.1% increase year-over-year.

• Board transition announced: Tony Howarth AO retiring as Chair, succeeded by Fiona Harris AM.

Financial highlights

• Revenue from ordinary activities rose 3.0% to $103.6 million for the half-year ended 31 December 2025.

• Funds from operations (FFO) rose 6% to $70.4 million, with a 98.6% payout ratio.

• Net tangible assets per security increased to $4.00, up 2.0 cents from June 2025 and 12.0% year-over-year.

• Portfolio valuation uplift of $155.9 million, with a 13 bps cap rate compression to 5.27%.

• Gearing increased to 24.7%, within the board's preferred 20–30% range.

Outlook and guidance

• Full-year distribution guidance reaffirmed at 19.41 cents per security, a 4.1% increase year-over-year, subject to no major economic disruption.

• Capital expenditure of $60–$70 million expected for FY26, focused on repurposing and tenant-led expansion.

• Most repurposing timing differences expected to be completed in the first half of FY27.

• 93 leases to be reviewed for rent increases in the second half, with three Bunnings market rent reviews pending.